9911796707
|
Home
Issues:
- Appeal against order of Income-tax Appellate Tribunal for assessment years 1993-94 and 1995-96. - Substantial questions framed in the appeals regarding additions and assessments. - Search and seizure operation under section 132(1) leading to assessment. - Discrepancies in income declaration, source of investments, and gifts claimed. - Rejection of affidavit and lack of opportunity for explanation. - Challenge to findings of lower authorities and need for proper enquiry. Analysis: The High Court of Rajasthan heard two appeals against the Income-tax Appellate Tribunal's order for the assessment years 1993-94 and 1995-96. The substantial questions raised in the appeals revolved around the additions made to the income of the assessee and the validity of the assessments. The circumstances leading to these appeals included a search and seizure operation conducted at the father-in-law's premises, resulting in notices under section 148 being issued to the assessee for scrutiny of her returns. The assessee had declared income below the taxable limit for both years but claimed investments from marriage gifts and parental gifts as the source. However, discrepancies arose regarding the evidence provided for these claims, leading to the rejection of the declarations by the Assessing Officer. The Commissioner of Income-tax (Appeals) and the Income-tax Appellate Tribunal upheld these rejections, prompting the appeals before the High Court. The High Court noted that the rejection of the father's affidavit without affording an opportunity for explanation was unjust. The court emphasized that the genuineness of the father, his employment as a lecturer, and the daughter's residence were not in dispute. Therefore, the rejection of the affidavit solely based on technical grounds was deemed improper. The court held that the findings of the lower authorities lacked proper inquiry and opportunity for the assessee to substantiate her claims, thereby vitiating the assessment process. In light of these observations, the High Court allowed the appeals, setting aside the orders of the lower authorities. The court directed the Assessing Officer to conduct a thorough investigation into the sources of the investments claimed by the assessee, ensuring a fair opportunity for explanation. The court emphasized the importance of following due process and conducting assessments in accordance with the law.
|
